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Supply Chain Collaboration – the secret to Foodstuffs’ success

Collaboration within the FMCG Supply Chain was the theme at the NZ Food & Grocery Council Supply Chain Excellence Forum held this morning with presentations by Vaughan Grant, GM of Supply Chain Foodstuffs North Island and John Mullins, GM of Supply Chain Foodstuffs South Island.

Customers continue love shopping at Foodstuffs’ PAKn’SAVE, New World, and Four Square supermarkets. In order to help achieve a great shopping experience, the two co-operatives have created an environment of service excellence, customer focus, and collaboration throughout their respective supply chains.

The transformation and modernisation projects underway at Foodstuffs North Island were shared by Vaughan as part of their goal of making sure New Zealanders get more out of life. He also highlighted key supply chain strategies. “Our purpose is to connect suppliers to stores, safely and efficiently, to meet our customer needs”. He went on to emphasise how important supply chain collaboration is between retailers and suppliers.

“We are agile, efficient, and able to compete now and in the future – so we can continue provide New Zealanders groceries at the best possible prices.” Vaughan also took the group through the Supply Chain Partnership Framework which focusses on stock availability, transactional efficiency, route to market options, and collaborative inventory management.

There was a continued focus on safety, “We continue to make good progress on ensuring our team goes Home Safe Everyday with additional training provided to the teams and a shift towards a safety culture.”

John presented Foodstuffs South Island successful trading results along with the many challenges associated with a supply chain in an earthquake-prone region. The recent Kaikoura earthquake this past November continues to have an impact. “Our in-built resilience has seen us survive through yet another difficult period resulting in a very satisfactory shift upwards in our market share.” New store openings in key locations such as West Melton, Christchurch and Queenstown have seen significant volume and value growth, resulting in pressure on the ability to deliver security of supply.

Foodstuffs South Island have invested heavily in new streamlined systems designed to reduce product handling and enhance service delivery. “Transport Management is a core focus for us – we’re all about improving transport visibility and understanding where our supplies are to ensure we continue to meet customer expectations. Additional distribution and system developments include 3PL , Cross Docking along with the major expansion of the Hornby DC Temperature controlled facility (Project Chilly Bin).”

The style of engagement within supply chain in both co-operatives will continue to be a priority and is delivering measurable positive results for both customers, retailers, and their suppliers.